CMBS - multiseller

Nov 2016: Institutional Mortgage Company of Canada issued a further CMBS, but its "...first multi-seller transaction for IMSCI with collateral contributions from multiple sellers including IMC, Royal Bank of Canada, and Trez Commercial Finance Limited Partnership." [Trez is a commercial property lender in Canada].

Details here

Nov 2014: Deutsche issued a pass-through CMBS (using a mortgage trust structure) from several commercial property sellers, secured on loans that were themselves secured on 267 properties in various business sectors. Details here. Moody's affirmed its rating in Sep 2016 although one of the loans is in imminent default and being retructured. Details here.

Fusion CMBS are pools of commercial loans where there is one large loan and numerous conduit loans

Conduit loans are standardised commercial loans offered by a consuit company that then issues CMBS secured on these conduit loans. See here for an example of a US conduit firm.

The firm describes conduit loans as

"In a securitization, there is sale of interests in the conduit loan and an assignment of the loan within a few weeks or months after the closing to an institutional trustee. The investors who buy interests in the conduit loan are issued "pass-through" certificates. Instead of making payments to the institutional lender, the borrower makes payments to a commercial mortgage servicer, who sees that the payments are applied as provided in the conduit mortgage documents, including to fund any required reserves. Payments of principal and interest are allocated according to the relative interests of the certificate holders."